Lenders Use Either a Front-End or Back-End Ratio When Setting

question 22

True/False

Lenders use either a front-end or back-end ratio when setting limits on how much a home buyer can borrow.

---

Definitions:

Normative Influence

The effect of social norms and expectations on an individual's behavior, pressuring them to conform.

Social Identity Theory

A psychological theory proposing that people classify themselves and others into various social categories, such as racial groups or sports teams, which influences their behaviors and perceptions.

Social Dominance Theory

A theory suggesting that societies are structured in hierarchical group systems, with inequalities maintained through mechanisms such as discrimination and systems of oppression.

Status Position

The rank or standing of an individual or group within a societal or organizational hierarchy.